{"id":4293,"date":"2019-08-03T06:23:03","date_gmt":"2019-08-03T06:23:03","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=4293"},"modified":"2019-08-03T06:23:05","modified_gmt":"2019-08-03T06:23:05","slug":"rbi-relaxes-the-end-use-stipulations-under-ecb-framework","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/rbi-relaxes-the-end-use-stipulations-under-ecb-framework\/","title":{"rendered":"RBI relaxes the end-use stipulations under ECB Framework"},"content":{"rendered":"\n

Based on the feedback from stakeholders and with a view to further liberalise the ECB framework, it has been decided, in consultation with the Government of India, to relax the end-use stipulations relating to external commercial borrowings for Working Capital requirements, General Corporate purposes and Repayment of rupee loans. Accordingly, eligible borrowers will now be allowed to raise following ECBs from recognised lenders, except foreign branches\/ overseas subsidiaries of Indian banks:<\/p>\n\n\n\n

Daily Current Affairs Quiz 2019<\/a><\/strong><\/p>\n\n\n\n

  1.  ECBs with\na minimum average maturity period of 10 years for working capital purposes and\ngeneral corporate purposes. Borrowing for on-lending by NBFCs for the above\nmaturity and end-uses is also permitted.<\/li>
  2. ECBs with a minimum average maturity period of 7\nyears for repayment of Rupee loans availed domestically for capital\nexpenditure. The borrowings for on-lending by NBFCs for the repayment of rupee\nloans would also be permitted. For repayment of Rupee loans availed\ndomestically for purposes other than capital expenditure and for on-lending by\nNBFCs for the same, the minimum average maturity period of the ECB would have\nto be 10 years.<\/li>
  3.  It has\nfurther been decided to permit eligible corporate borrowers to avail ECB for\nrepayment of Rupee loans availed domestically for capital expenditure in\nmanufacturing and infrastructure sector and classified as SMA-2 or NPA, under\nany one-time settlement arrangement with lenders. Lender banks are also\npermitted to sell, through assignment, such loans to eligible ECB lenders,\nexcept foreign branches\/ overseas subsidiaries of Indian banks, provided, the\nresultant external commercial borrowing complies with all-in-cost, minimum\naverage maturity period and other relevant norms of the ECB framework.<\/li><\/ol>\n\n\n\n

    The relative circular is being issued simultaneously.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Based on the feedback from stakeholders and with a view to further liberalise the ECB framework, it has been decided, in consultation with the Government of India, to relax the end-use stipulations relating to external commercial borrowings for Working Capital requirements, General Corporate purposes and Repayment of rupee loans. Accordingly, eligible borrowers will now be […]<\/p>\n","protected":false},"author":13,"featured_media":4294,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[45],"tags":[64],"class_list":["post-4293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles","tag-reserve-bank-of-india-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=4293"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4293\/revisions"}],"predecessor-version":[{"id":4295,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4293\/revisions\/4295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/4294"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=4293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=4293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=4293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}